The German government wants Greece to stay in the eurozone and there are no contingency plans to the contrary, Vice Chancellor Sigmar Gabriel said yesterday (4 January), responding to a media report that Berlin believes the currency union could cope without Greece.
As European Commission President Jean-Claude Juncker prepares to unveil a €300 billion plan to boost investment in the Union, the liberal ALDE and the Socialists in Parliament tabled alternative proposals, stoking controversy amongst themselves.
Eurozone finance ministers backed a precautionary credit line for Greece on Thursday (6 November), after the country exits its bailout at the end of the year, in a bid to balance the need to reassure investors with the demands of Greek politics.
The IMF is in favour of Ireland refinancing its bailout loans and Dublin would like to begin the process this year if it can get agreement in Europe, finance minister Michael Noonan said on Monday (28 July).
The euro zone's bailout fund, the European Stability Mechanism, could directly invest in a troubled bank next year, after 8% of the bank's total liabilities are written off, the chairman of eurozone finance ministers said on Monday (5 May).
The European Union is considering ways to ensure that a future eurozone fund to finance bank closures will always have enough cash, including the option of halving the time in which the fund would reach its full size to five years.
Germany challenged a central plank of plans to forge a banking union in the eurozone yesterday (14 November), arguing against the use of the currency bloc's funds to help lenders exposed as dangerously weak by health checks next year.
Eurozone finance ministers agreed on Thursday (20 June) how its European Stability Mechanism (ESM) can invest in troubled banks, but imposed so many conditions that they may not completely succeed in their goal of separating problem banks from their indebted home countries.
Cyprus's debt crisis risks spreading to other euro zone countries, the head of the euro zone's bailout fund said in a newspaper interview, urging a rapid decision on aid for the Mediterranean island country.
Rising expectations that Spain will soon ask for a euro zone credit line to help cut its borrowing costs look set to dominate a European Union summit beginning on Thursday (18 October), potentially crowding out talks on a disputed banking union.
Eurozone's new permanent rescue fund was launched on Monday at a meeting of finance ministers in Luxembourg. Funded by taxpayers' money, the so-called European Stability Mechanism will have a 500 bn euro budget to help finance debt-ridden countries.
Eurozone finance ministers meeting in Luxembourg launched the European Stability Mechanism (ESM) yesterday (8 October), a €500-billion rescue fund for the 17 countries that share the currency. Its first task will be to help Spain recapitalise its banks, but reportedly no discussion took place about Madrid needing a full bailout.
Germany cleared the last legal hurdle to ratifying the euro zone's new bailout fund on Wednesday (26 September) with a cabinet declaration that addresses concerns raised by the country's Constitutional Court. The German parliament will have veto rights over any increase in Berlin's contribution, which is now capped at €190 billion.
Eurozone states are preparing to allow the bloc's permanent bailout fund to leverage its capital in the same way as its predecessor so it can reach a capacity of more than €2 trillion and rescue big countries if necessary, Der Spiegel reported yesterday (23 September).
Germany's Constitution Court today (12 September) rejected efforts to block the European Stability Mechanism - the eurozone's €500-billion bailout fund - paving the way for the country's ratification of the fiscal compact.
France’s President François Hollande has insisted that the European Union needed more solidarity and a system for debt mutualisation, a position which fell foul of Germany’s insistence that this should only happen after countries agree to greater fiscal oversight from Brussels. EURACTIV France reports.
The European Commission today (14 August) downplayed any risk of a substantial delay in Germany’s final approval of the eurozone's permanent bailout fund despite efforts to postpone a ruling on its legality.
The eurozone faces economic disaster unless its financially stronger states and its central bank commit to bearing a larger share of the region's debt burden, leading global economists including two advisors to the German government said.
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